IN
SUPPORT OF REPATRIATING CORPORATE EARNINGS TO BUILD INFRASTRUCTURE IN THE
UNITED STATES

WHEREAS, The United States Conference of Mayors has always
shown a strong commitment to investment in United States infrastructure, which
creates jobs and improves communities; and

WHEREAS, according the research firm Audit Analytics, US
Corporations increased their offshore earnings last year by 15% to a record
$1.9 trillion; and

WHEREAS, according to the 2013 Report Card for America’s
Infrastructure, U.S. Infrastructure has a cumulative grade of “D+” with an
estimated $ 3.6 trillion investment needed by 2020; and

WHEREAS, Congress has introduced legislation like thePartnership to Build America Act that
would finance the rebuilding of our country’s transportation, energy,
communications, water, and education infrastructure through the creation of an
infrastructure fund using repatriated corporate earnings as well as through
utilizing public-private partnerships; and

WHEREAS, suchlegislation
would create the American Infrastructure Fund (AIF) which would provide loans
or guarantees to state or local governments to finance qualified infrastructure
projects; and

WHEREAS, AIF will be funded by the sale of $50 billion worth of
Infrastructure Bonds which would have a 50-year term, pay a fixed interest rate
of 1 percent, and U.S. corporations would be incentivized to purchase these new
Infrastructure Bonds through the repatriation of corporate earnings; and

WHEREAS, the AIF would leverage the $50 billion of
Infrastructure Bonds at a 15:1 ratio to provide up to $750 billion in loans or
guarantees; and

WHEREAS, legislation like this would provide increased
resources for financing of infrastructure, while not contributing to the
federal debt; and

WHEREAS, such legislation is estimated to provide a path for
approximately $200 billion, or 10 percent of corporate earnings to return to
the United States,

THEREFORE BE IT RESOLVED, that The United States Conference of Mayors supports
efforts like these in the Partnership to Build America Act that would provide
competitive financing to improve infrastructure in the United States through
the repatriating of corporate earnings; and

BE IT FURTHER RESOLVED, that support for this or similar legislation should
not be used in any way to replace or undermine the full federal funding
infrastructure projects or tax exempt status for municipal bonds which are
vital tools in improving infrastructure in the United States.